HomeMy WebLinkAboutAgenda - 03-23-2000 - 5ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 23, 2000
Action Agenda
Item No. 42'
SUBJECT: Presentation of 2000 -2010 Capital Investment Plan (CIP)
DEPARTMENT: County Manager /Budget PUBLIC HEARING: (Y /N) No
ATTACHMENT(S):
2000 -2010 Recommended CIP
(to be distributed prior to work session
under separate cover)
INFORMATION CONTACT:
Rod Visser, ext 2300 or Donna Dean, ext
2151
TELEPHONE NUMBERS:
Hillsborough
732 -8181
Chapel Hill
968 -4501
Durham
688 -7331
Mebane
336- 227 -2031
PURPOSE: To receive the Manager's presentation of the recommended CIP for 2000 -2010.
BACKGROUND: Each year, the County Manager and staff update the County's ten -year
Capital Investment Plan (CIP). The CIP is a multi -year plan that addresses County and school
needs for long -lived assets. Items typically included in the CIP are construction, refurbishment,
or purchases of buildings; land acquisition or improvement; and major equipment and vehicle
acquisition and financing. This process offers an opportunity to review long -term capital needs
and enables timely acquisition and phased financing of major assets.
The Manager and Budget Director will make a brief presentation on significant aspects of the
proposed 2000 -2010 CIP at the March 23 work session and respond to any Commissioner
comments or questions. This presentation is intended to be `Yor information only " at this time -
the Board is not expected to make any decisions on project allocations at this meeting.
Time has been allocated at the March 29 Commissioners' budget work session to review the
CIP in more detail. Furthermore, the Manager recommends that the Commissioners establish a
public hearing date of April 17, 2000 to receive citizen comments on the CIP. Final discussion
and major CIP decisions would then be slated for the May 9 budget work session.
FINANCIAL IMPACT: There is no direct financial impact from the presentation of the CIP.
However, the Board will make allocation decisions, for both County and school capital projects,
involving several million dollars later this spring. These Board funding decisions for FY 2000 —
01 will be enacted through capital project ordinances that will be adopted in June 2000.
RECOMMENDATION(S): The Manager recommends that the Board receive the presentation
for information only at this time, and set a public hearing on the CIP for 7:30pm on Monday,
April 17, 2000 at the Southern Human Services Center in Chapel Hill.
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Annual Update
March 23, 2000
Overview
• Total funding plan of almost $225 million
— $153.5 million for School projects
— $71.2 million for County projects
Addresses important facility, equipment and
property concerns
Provides foundation for future initiatives
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School Projects Update
• Both districts addressing needs at older
schools
• Two new projects opened this past fall
• Three new schools being constructed
County Projects Update
• Three affordable housing projects funded in
the last two months
• Recent purchase of Duke Forest property
• Moving forward with renovations at
Whiffed and Northern Human Services
Centers
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Primary Funding Sources
• Half cent sales tax and earmarked property
tax
• Grant funds
• School impact fees and State Public School
Building Funds
• Peak debt service for Orange County
Schools (page ii of Manager's Message)
April 2000 Bond Sales Affect on
Next Year's Available Funds
• Board recently authorized bond sales
totaling just over $40 million for School and
County projects
• Annual debt service installment projected
between $3 and $3.5 million
• First installment due next fiscal year (2000-
01)
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Future Debt
• 1997 Bonds
— About $21 million remains unsold
Projecting sale in April 2001 or April 2002
— Annual debt service installment projected at
least $1.5 million
Future Debt
• Private Placement Funding for New OCS
High School ($12.5 million)
— 10 year repayment schedule
— Debt service payments to come from OCS
available pay -as- you -go funding
— Estimated payments total over $1.7 million per
year
4
Future Needs Identified by Schools
• Chapel Hill- Carrboro City Schools
— New elementary school to open 2003-04 school
year (total projected cost $17.8 million)
— Purchase land for four school sites (total
projected cost of $S million)
• Orange County Schools
— New middle school (total projected cost of $20
million)
Major County Initiatives Affecting
Future Capital Planning
• County Space Study
• Justice Facility Planning
• Northern Human Services Task Force
• Senior Centers
• Lands Legacy Program
• Firearms Training Facility
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Looking Ahead
• Convergence of all initiatives will occur over
the next twelve to eighteen months
• Funding needs likely to exceed available
resources significantly
• Additional bond referendum may be required to
meet future needs of Schools and County
Options for Funding Unmet Needs
• CIP sets aside monies in later years of plan
(Reserve for County Space Study and Future Debt
Service, page 42 of document)
• Additional voter approved bonds
• Private placement funding
• y
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Work Sessions and Public Hearing
Joint work session Monday, March 27
with Schools
Commissioner work Wednesday, March 29
session
Public Hearing Tuesday, April 17
(suggested date)
Document Availability
Available on the Internet
— www. co .orange.nc.us/budget/index.htrn
• Orange County Library
• Chapel Hill Public Library
• Carrboro Library